Opportunities for Chartered Accountants in International

taxation

May 2013

- C.A. T. P. Ostwal

T.P.Ostwal & Associates

The Institute of Chartered Accountants of India

EASTERN INDIA REGIONAL COUNCIL

Opportunities for Chartered Accountants in International Taxation

May 2013T.P.Ostwal & Associates

Emerging Areas of Practice

• International M& A• Transaction Advisory• Tax Treaty Application

& Interpretation

• Re-organisations, Spin offs and Work outs• Inbound Structuring• Outbound Structuring

• Transfer Pricing• Tax Dispute Resolution including MAP

•Advance Pricing•Arrangements (APA)•Taxplanningtechniques

•Taxation of Immigrants & Emigrants•Turnkey EPC Contracts

EMERGING TAX PRACTICE AND EXPERTISE

1. Domestic Tax Experts

2. Domestic International Tax Experts

3. International – International Tax Experts

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Opportunities for Chartered Accountants in International Taxation

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Opportunities for Chartered Accountants in International Taxation

T.P.Ostwal & Associates May 2013

1. Tax Exchange Information Agreements (TIEA)

2. Foreign Account Tax Compliance Act (FATCA) - US Regulation

3. Foreign Income for tax compliance requirements – Inadvertent trigger

4. Foreign Tax Credit Rules

5. WHT on payments Nokia case -an eye opener

6. General-Anti-Avoidance Rules (GAAR)

7. Direct Tax Code (DTC)

8. Controlled Foreign Corporation (CFC)

9. Thin Capitalization Regulation

10. White Paper on Black Money

LIST OF TIEA’s

11. Organisation for Economic Co-operation and Development (OECD)

Beneficial Ownership

Safe Harbor Rules

Permanent Establishment Issues

T.P.Ostwal & Associates

Opportunities for Chartered Accountants in International Taxation

May 2013

12. Emerging trend in Indian DTAAs

T.P.Ostwal & Associates

LOB clause in Dividend Article

Collection of Tax on behalf of other states (countries)

Examination of tax payers on other countries by Tax Inspectors

Opportunities for Chartered Accountants in International Taxation

May 2013

13. Electronic Commerce

T.P.Ostwal & Associates

Opportunities for Chartered Accountants in International Taxation

May 2013

May 2013

14. Cloud Computing

Opportunities for Chartered Accountants in International Taxation

15. Transfer Pricing

May 2013T.P.Ostwal & Associates

Source: White paper on Black Money, Ministry of Finance, May 2012

Opportunities for Chartered Accountants in International Taxation

Issues and challenges in Transfer Pricing

T.P.Ostwal & Associates

1. Inter Company Accounts Payable / Accounts Receivable covered

2. Transfer of Intangible Properties and business restructuring

3. Corporate Guarantees, keep-well agreements and comfort letters

4. Lack of co-ordination between Transfer pricing policies and customs valuation for Reporting

5. Poor or missing Transfer Pricing procedures and controls within the Group

6. Incomplete Transfer Pricing documentation

7. Safe Harbor Rules

8. Domestic Transfer Pricing

9. UN Transfer Pricing Manual

10. APA

Opportunities for Chartered Accountants in International Taxation

May 2013

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List of TIEA’s signed by India

1. Argentina (Not yet in force) 2. Bermuda 3. Bahamas 4. Baharain5. British Virgin Islands 6. Cayman Islands 7. Guernsey 8. Isle of Man9. Jersey 10. Liberia 11. Liechtenstein 12. Macao 13. Monaco 14. Sint Maarten (Not yet in force)

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THANK YOU

T. P. Ostwal & AssociatesCHARTERED ACCOUNTANTS

4th Floor, Bharat House, 104 Mumbai Samachar Marg,

fort, MUMBAI-400001. Tel No.: +91-22-40693900Fax No.: +91-22-40693999

Mobile:+919004660107Email: fca@vsnl.com

May 2013